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First Basin CU Launches Legal Fight After Conversion Plan Washes Out

ODESSA, Texas -- Once again, a credit union that tried and failed to convert to a bank has taken legal action against some of its members who opposed it.

By David Morrison | Updated on August 26, 2008

ODESSA, Texas — Once again, a credit union that tried and failed to convert to a bank has taken legal action against some of its members who opposed it.

The now $129 million First Basin Credit Union filed its application to convert to a mutual bank charter in August 2007 but withdrew it before the member balloting was completed. At the time the CU said it withdrew the application because of a campaign of “misinformation,” including phone calls, among members about the effects of the conversion.

Those allegations form the kernel of First Basin’s legal complaint against six of its members, along with the National Center for Member Trust and the $303 million Self-Help Credit Union.

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